Upgrade your HVAC with a heat pump
Electrical panel upgrade? If replacing AC with HP, there is probably no problem. If adding a new HP and NOT replacing AC, then you might need more panel capacity. (provide more info about when you might need a panel upgrade and how much it might cost).
Heat pumps are not cheap; a new system to heat your 2,000 ft2 home (assuming you are keeping your backup furnace) may cost $10,000 – $15,000. A mini-split heat pump system to serve one or two rooms may cost $8,000 – $10,000.
Below is a summary of state and federal tax credits available.
| Tax Credits | Tax Credit Amount | Requirements |
|---|---|---|
|
Federal tax credit
|
30% up to $2,000
|
CEE requirements*
|
|
State tax credit
|
$1,500 (min. of $500 to customer)
|
Energy Star certified
|
*CEE HP requirements for the federal tax credits are explained here. Note that a normal, non-cold-climate HP will not qualify for the federal tax credit.
Go here to search for your utility or local government rebates. (Note: these rebates are in addition to the tax credits.)
In addition, if your household income does not exceed 80% of the Area Median Income (AMI) (which you can check here); in late 2024 the Colorado Energy Office will offer additional rebates for heat pumps.